Kingbird, Inc. has had 4 years of net income. Due to this success, the market price of its 340,000 shares of $ 4 par value common stock has increased from $ 12 per share to $ 53. During this period, paid-in capital remained the same at $ 4,490,000. Retained earnings increased from $ 1,900,000 to $ 13,000,000. President E. Rife is considering either a 13% stock dividend or a 2-for- 1 stock split.

He asks you to show the before-and-after effects of each option on retained earnings.

He asks you to show the before-and-after effects of each option on total stockholders equity.

Retained earnings after stock dividend $ Retained earnings after stock split